The incredible shrinking share price at GoPro continues to rear its ugly head. On Friday the company’s shares fell below the company’s $24 IPO.
The company peaked at $98 but quickly lost steam as new competitors emerged and questions about sustainability flooded the market.
Based on the company’s new pricing common stock investors and institutional investors are now facing a loss.
“The IPO price is a technical cliff. When stocks break below it, they tend to go down with even more of a thud,” said Kathleen Smith, a principal at Renaissance Capital, which manages IPO-focused ETFs.
The company had been declining for months but new questions over general economic sentiment, fed interest rate increase, and a slowing economy really hit the company hard on Friday.
Since the end of September GoPro shares have lost a mindboggling 64% of their value.
Sales surged 72% in the second quarter but just 43% last quarter and GoPro is now warning sales will actually decline during the critical holiday season.
The company still features a powerful brand that offers more than 3.5 million followers on YouTube. Customer satisfaction among GoPro users is also incredibly high.
Piper Jaffray analyst Erinn Murphy recently downgraded GoPro to an “underperform” rating.
The company’s biggest issue appears to be the lack of new products leading up to the holiday season.